Input needed...price for Dealer Demo...

[rickkapur]

Am impressed by so many Genesis smart people here....and would love to get some inputs on below...if this is a decent deal, or not...

- Local dealer is indicating a Dealer Demo 2015, 5.0, Ultimate with 6K miles for about $9K off the MSRP 55925; and will be sold as a New Vehicle with full factory warranties, etc. Guess the dealer manager was using it as a personal car.

Does this make sense? What would be a fair market value of a deal like this?

Also, are dealer demos worth buying?

Thanks

 

[Sal Collaziano]

I think I can get one brand new for about $49k so you're saving about $3k more than me but have 6k miles on the car... It's not a bad deal but I think I'd personally pass on that deal...

Go to truecar.com like I did and price one out...

 

[RSPEC429]

$9k of pure dealership rebates is decent. The most I've seen discounted from a new, non-demo Genesis is $6k.

Also, since you're buying new, you should also qualify for the $1000 competitive/loyalty rebate. If you're military, or were military, add that as well ($500).

 

[Mark_888]

All dealer demos were used as a personal car by the General Manager of the dealership. At least that is what every car salesperson on the planet claims.

 

[Aquineas]

I think I can get one brand new for about $49k so you're saving about $3k more than me but have 6k miles on the car... It's not a bad deal but I think I'd personally pass on that deal...

Go to truecar.com like I did and price one out...

+1.

 

[RSPEC429]

All dealer demos were used as a personal car by the General Manager of the dealership. At least that is what every car salesperson on the planet claims.

^
This

They're well below even their cost after holdback so I would say they're probably losing some money here. Finance with them/Hyundai because they likely make a commission from that and maybe ask for some more off IF you're so inclined.

Doesn't seem like V8 Gennies are exactly flying off dealer lots either, so they are probably eager to get rid of it as well.

 

[MagicRobert]

You may want to check to make sure it has not been licensed. If you are the "second owner" it shortens the 10 yr warranty to 5 yrs.

Dealerships handle this differently. It probably has not been licensed/titled, but it may have been.

Just one more fact to add to your decision process.

 

[kn5owa]

All dealer demos were used as a personal car by the General Manager of the dealership. At least that is what every car salesperson on the planet claims.

Amen, Amen: I got the same story at almost every dealer I shopped.

They not only steered me to the "managers' cars", but wanted high "as if new" prices.

 

[jarred52]

Sounds like 6,000 likely very rough demo miles; not a proper break-in. Probably not even serviced. I would not buy it even if $20,000 off.

 

[daviderle]

For what its worth, I lost out on some warranty work (thankfully it was only a wheel alignment that I was supposed to get for free for up to a year)!

According to HMA Cooperate, if the vehicle has more than 499 miles, the warranty date starts from the car ‘in service’ date, which apparently all dealers have to register the car with HMA if milage hit 500 mile, which of course does not match what dealer told me at the time of the purchase!

So in addition to the milage, I would also take the date that car went ‘in service’ into account.

In my case, I lost 5 months as well as the 1000 miles worth of service.
The date/miles will also affect the HMA warranty date/miles should you decide to purchase that extended warranty.

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[Sal Collaziano]

I think the general consensus here is, "skip that one"...

 

[rickkapur]

Great feedback...many thanks.

What would be the advice, if I were to get the price down, but then just lease it for 3 years? Would that limit my exposure, and make sense?

Thanks

 

[ksoze]

What would be the advice, if I were to get the price down, but then just lease it for 3 years? Would that limit my exposure, and make sense?

At some point the price is worth the fact it has been driven previously for 6K miles - as long as it is indeed a new car warranty. I don't think it matters if it's leased or not - if the car was abused it will plague you either way with service visits and issues long before your lease is up. Lease because a lease makes sense for you, not because of this car.

 

[GenesisCaptain]

What would be the advice, if I were to get the price down, but then just lease it for 3 years? Would that limit my exposure, and make sense?

Get the price where you are comfortable, and then buy or lease, whatever bets fits your financial situation.

The speculation posts about the condition of the car are ridiculous, so ignore those. I bought a dealer program car, and a number of others on the forum have as well. I love mine-- it has been flawless. But, it is all about the price.

At the time I got my 2012, my price was probably about $5K below (maybe more) the best deal I could find anywhere on a new one. My car had about 3K miles, so a $5K discount was a no-brainer value for those miles.

6K miles is higher than I have seen. But it is not out of line. I would not discard the car because of the miles. However, I would be certain that it is reflected in the price and you are comfortable that the discount aligns with its age.

For example, what is the best deal you can find on a comparable new Genesis. I would want this loaner to be $4,500 to $6,000 below that price. My reasoning is simply math: use a $0.75 to $1.00 depreciation factor per mile. If the difference between that car and the best deal is only $0.50/mile, then I would skip it-- it is no better than buying a brand new car.

 

[Sal Collaziano]

The speculation posts about the condition of the car are ridiculous

I wouldn't necessarily say the speculation is "ridiculous". The facts are - the car has been driven for 6,000 miles. I don't know how many miles were on yours before you got into it - but, perhaps your car was driven "nicely" during that time. One never knows how this 6,000 mile car was driven.

Chances are it's fine and will be fine throughout the warranty period. But I wouldn't necessarily call the speculation ridiculous...

 

[greekgeek]

You can get a new 2015 5.0 for $41k, w/o ultimate package right now so I would say no deal. 5.0 ultimate have gone as low as $45k.

 

[GenesisCaptain]

I wouldn't necessarily say the speculation is "ridiculous".

I called the speculation ridiculous, because a post concluded that it had "very rough demo miles," "not a proper break-in," and "not even serviced." There are no facts to back that up, therefore it should be disregarded.

 

[Sal Collaziano]

I called the speculation ridiculous, because a post concluded that it had "very rough demo miles," "not a proper break-in," and "not even serviced." There are no facts to back that up, therefore it should be disregarded.

True, we can't come to that "conclusion" with this car. They're only possibilities...

 

[RSPEC429]

When it comes to leasing a demo, does it make sense? I spoke to a dealership that had a demo and the sales manager that I spoke with said they would have to tack on the mileage that was already on it to the lease as if it was a mileage overage. I'm not sure if he was full of it, or if they really have to do that being that residual values are determined largely by using mileage. Say I get a term with 36,000 miles, they calculate value based on what it will be worth at that mileage, not what it will be worth at 42,000 miles. Am I thinking about that correctly?

 

[Mark_888]

When it comes to leasing a demo, does it make sense? I spoke to a dealership that had a demo and the sales manager that I spoke with said they would have to tack on the mileage that was already on it to the lease as if it was a mileage overage.

I am not a leasing expert, but that sort of makes sense to me. All cars have some mileage on them when leased, and you don't credit for them if you go over the allotted amount. However, the dealer should be able to make up for that by lowering the price on which the lease is based upon.